TMI Blog2020 (8) TMI 574X X X X Extracts X X X X X X X X Extracts X X X X ..... 8377; 76.45 Crores as awarded in its favour. Even if, it is accepted that said amount of ₹ 20 Crores, as deposited with the Registrar General of Delhi High Court, is meant for payment to the Appellant - Morgan Securities Credits Pvt. Ltd. against the awarded amount of ₹ 76.45 Crores - the Bank Guarantee of ₹ 20 Crores given by the Bank on behalf of the Corporate Debtor, relates to the claim of the Appellant - Morgan Securities Credits Pvt. Ltd. which has been taken care by the Resolution Professional against the claim preferred in the Corporate Insolvency Resolution Process. Such being the position, during the Corporate Insolvency Resolution Process, the amount will be deposited with the Resolution Professional and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... favour of it, has been rejected. 2. The Adjudicating Authority held that the amount will be deposited with the Resolution Professional of Videocon Industries Ltd. (Corporate Debtor) and observed that the said amount of ₹ 20 Crores is an asset of the Corporate Debtor given as security interest to Morgan Securities Credits Pvt. Ltd. . 3. Part of the impugned order has been challenged by the Resolution Professional wherein the Adjudicating Authority observed that the amount of ₹ 20 Crores has been given as security interest by the Corporate Debtor to Morgan Securities Credits Pvt. Ltd. . 4. Before initiation of the Corporate Insolvency Resolution Process, in an arbitration proceeding arbitral award was passed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hon ble High Court of Delhi relating to the fixed deposit amount of ₹ 20 crore which was ordered to be retained with the Registrar General subject to the decision of insolvency proceeding. The Division Bench of the Hon ble High Court of Delhi dismissed the said appeal under Section 37(1)(b) with following observations:- 11. To that extent, the Learned Single Judge was right in concluding that as on the date of passing of the impugned order i.e. 7th February, 2019 with the insolvency proceedings having already commenced, the moratorium in terms of Section 14 of the IBC would be in place. How the said amount of ₹ 20 Crores together with interest accrued thereon should be dealt with would, therefore, be subject to the orders p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... moratorium in terms of Section 14(3) of the I B Code. 12. Stand of the Resolution Professional is that the Corporate Debtor furnished the Bank Guarantee in favour of the Registrar General of the High Court of Delhi, pursuant to order dated 13th November, 2013 passed by the Delhi High Court. The Allahabad Bank has issued the Bank Guarantee at the instance of the Corporate Debtor and renewed it from time to time on the request of the Corporate Debtor. Lastly, it was renewed on the request of the Corporate Debtor on 2nd December, 2017 valid upto 5th December, 2018. It was further submitted that the Morgan Securities Credits Pvt. Ltd. has filed a claim amounting to ₹ 325 Crores with the Resolution Professional which includes the am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g Urban Development Authority Vs. Ranjit Singh Rana, (2012) 4 SCC 505 , we hold that the Bank Guarantee of ₹ 20 Crores given by the Bank on behalf of the Corporate Debtor, relates to the claim of the Appellant - Morgan Securities Credits Pvt. Ltd. which has been taken care by the Resolution Professional against the claim preferred in the Corporate Insolvency Resolution Process. Such being the position, during the Corporate Insolvency Resolution Process, the amount will be deposited with the Resolution Professional and the Appellant s claim can be taken care by the Successful Resolution Applicant, if a resolution plan is approved. During the liquidation stage the amount of ₹ 20 Crores cannot be treated as Security Interest ..... X X X X Extracts X X X X X X X X Extracts X X X X
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